BOP: Business Owners Policy
By buying business insurance, you take a big step to secure your finances and create a strong risk management strategy. After all, you never know when a single incident like a fire or break-in could devastate your business and cost you a fortune.
One of the simplest ways to put together a strong business insurance portfolio is to start your coverage with a business owner’s policy, better known as a BOP. It’s a great way to not only get strong coverage but also to save money on your benefits. Consider just a few of the extensive property benefits that a BOP can provide with just a few simple steps.
Why BOPs are Customizable
BOPs generally offer several standard types of commercial insurance in one place. These are:
- Property insurance to cover your company’s owned assets, including equipment and inventory.
- Liability coverage that pays for third-party injuries or property damage that are your fault.
- Business interruption insurance that will offer you coverage for lost income or overhead costs that continue to burden you even if you have to temporarily halt your work.
However, just because BOPs will offer you standardized coverage, that doesn’t mean they are not customizable. This is a particularly good benefit when it comes to your company property. After all, no two businesses are alike. That’s why the belongings you seek to insure are going to vary considerably, and you’ll want your BOP to be able to address them.
Within your BOP’s property insurance, you might be able to insure:
- Your inventory and the materials used to make products if you manufacture them on-site.
- Marketing materials.
- Company equipment. These items might be anything that you use to manufacture products.
- Furnishings such as shelving or storage cabinets, break-room appliances, chairs, desks, or decorative items.
- Electronic items such as computers, printers, company mobile devices, or tablets.
- Signage (both indoors and outdoors)
Of course, if you own the buildings that house your business, then your BOP can also insure the structure of the property itself. However, if you rent the property, then you usually don’t have any obligation to by coverage.
However, it is important to remember that all BOPs will include exclusions and limits to what they will pay for certain losses. For example, your policy won’t pay for normal wear & tear, nor will it cover any damage that costs less than the deductible on your coverage. Another common exclusion is a limitation on what your policy will pay for outdoor signage.
Still, you can work with your independent insurance agent to determine exactly how to tailor your BOP’s property coverage to your benefit. There are various coverage endorsements available which might be precisely the benefits you need for your company assets.